The CEO of Binance, Changpeng Zhao, sees positive progress for crypto regulation.
In a live video from the Messari Mainnet Conference, when talking to Ryan Selkis, founder and CEO of Messari, CZ said that governments are making slow but positive progress toward cryptocurrency regulation.
“On the regulatory side, I think we’re seeing a lot of progress in the positive direction for the regulatory framework.”
Binance is the world’s leading cryptocurrency exchange platform. It has over 90 million users and began in June 2017. Within 180 days after its launch, the firm became the largest cryptocurrency exchange in the world. The site is open to cryptocurrency regulation.
Regulators Will Attempt to Use Traditional Regulations on Crypto and Fail
According to CZ, regulators will attempt to use regulator methods from existing financial and digital assets like banks. However, they will realize that cryptocurrency markets are similar but different from traditional financial markets. Therefore, old regulatory methods will not work in the cryptocurrency markets.
“When a regulator looks at this industry, the first thing they will do is borrow from what they know already — how they regulate banks, exchanges and move that into here…Later, they’ll realize this is a car, not a horse; this thing fits differently. You can’t put a saddle on it.”
The CEO says the cryptocurrency market is still in its baby stages. He even uses a car parable to affirm this,
“…when cars first were invented, people drove them with two straps — similar to how you would direct a horse — and steering wheels came later…So I think we’re still kind of at that stage in the industry.”
Cryptocurrency Regulation and Adoption in 2022
2022 has witnessed increased cryptocurrency adoption as well as regulation. A few days after the merge, the SEC chair, Gary Gansler, said that the SEC is looking to regulate cryptocurrency, and the adoption of PoS has just made it more accessible. On Friday, the Governor of California, Gavin Newsom, recently declined a bill to regulate cryptocurrency. Gavin states that there is a much better way than imposing rules on a tender market. The truth is cryptocurrency adoption is growing. The market is in its baby stages. However, the regulatory bodies will find a way.
Binance is in full support of cryptocurrency regulation. The official website and CEO say that the organization is open to using the United States Framework in cryptocurrency regulation. An earlier article from Binance’s official website explains why it is available for cryptocurrency adoption. Binance states, “good regulations are good for cryptocurrency, and bad regulations are bad for cryptocurrency.” Therefore, cryptocurrency traders should avoid the ‘regulation is terrible for cryptocurrency’ mindset. The company says it is challenging to grow in an unregulated market,
“You grow big by being crazy, wild west, or unregulated… Nothing can be further from the truth. When you are about to deposit your hard-earned money with an exchange, the last thing you want is a crazy platform. What do you do? Your research and find an exchange that other people (and yourself) can trust. Being trusted by users is the best and only way to grow. In most places, being a regulated platform increases that trust for everyone.”
The exchange further states that cryptocurrency regulation will help users invest in more secure companies. The market is flooded with companies that take advantage of new traders. The exchanges massively scam users. Adopting cryptocurrency will also increase mass adoption.